Bitcoin: Should Investors Stay Away As it can be Another Ponzi Scheme

Virtual currency like BITCOIN is neither a coin nor a currency. This is exactlycan be termed as Ponzi scheme with investors getting trapped anticipating high return in short time. The government or the Reserve Bank of India has not recognized any virtual currency, so be safe and stay away from such schemes. The full account of the virtual currency remains in the digital format so there is a risk of losing money or losing money even when a virus arrives. The Ministry said that virtual currency can also be used for terrorist funding, smuggling, drug trafficking and money laundering. In such a situation, there is a need to be cautious about it.

Daunting Bitcon news, is that the Ministry of Finance had recently issued a statement stating that the virtual currency is not valid. Bitcon price can sound many lucrative for investors, but bubble can burst and many would be termed as Bitcoin Scammers or Bitcon Fraud. The government or any regulator in the country has not licensed any agency for virtual currency, can always be apprehended as some scams that may later take a new name as BITCOIN Scam. Those who are dealing with it should be aware of its risk. So, the investors who are dealing with BITCOIN ( Crpto Currency) or have been miss guided should be aware of this.

This statement of the Finance Ministry has come at a time when the Reserve Bank has already warned the investors of virtual currency for three times. The Reserve Bank of India had warned investors about virtual currency like Bitcoin in December 2013, February 2017 and now in December 2017.The Ministry said that in the recent times, the record of the virtual currency like Bitcoin, has increased in the whole world including India. There is neither a value in virtual currency nor any physical asset is kept for it. In this way bitcoin prices are based totally on speculation. Just as there is a risk of investment in the Ponzi scheme, investment in bitcoin is also risky. Therefore, investors should be cautious about entrapment in schemes like Ponzi.

What is Ponzi scheme

Ponzi scheme is from such fake investment schemes in which the operator gives returns to the old investors with the money received from new investors. It is a scheme in which virtually no money is invested in any business or any commercial activity, but some individuals are collected from the money and given to one person as a return. In this way, it becomes a chain, in which the money of most people who later put the money is sank. Ponzi, a businessman of Italy, used to pay similar money to people's money. Ponzi scheme was named after this name.

Pyramid scheme also one of the Ponzi scheme is a fraud involves an unsustainable business which rewards people for enrolling others into a business that offers a non-existent or worthless product. A fraudster advertises a multi-level investment scheme that offers extraordinary profits for little or no risk.

CONCLUSION

The virtual currency you are investing in may be used for illegal acts like terrorist funding, smuggling, and money laundering. BITCOIN with time can again be exposed as PONZI scheme for investors, thus investors should be cautious about entrapment in schemes like Ponzi. Crpto currency or the virtual currency market has been riding high waves. As one say anything that goes up, does come down, and nothing is permament.